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Green energy rebates and
incentives are provided
by state and federal
governments for both
residential and
commercial solar energy
systems.
In addition, solar
system owners are able
to obtain a Solar
Renewable Energy
Certificate (SREC) for
every 1000kWh of
electricity generated,
which can in turn be
sold to the utility
companies. The state
offers full exemption
from the state’s sales
tax for all solar
electric materials and
equipment as well. The
return on
your
investment will stem
from two sources. One is
the direct reduction in
your electricity bill,
and the other is the
sale of your SREC’s back
to the utility company.
The amount procured from
a combination of these
rebates and incentives
can easily surpass your
system’s installation
price, allowing you to
accumulate net profit
over time.
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The Federal
Tax Credit
is 30% of
the total
solar system
installation
cost for
homeowners
and
businesses
investment
in solar
power
electric,
hot water
and space
heating.
Businesses
are also
eligible for
new MACR
depreciation
benefits. |
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The State of
New Jersey
offers
rebates of
$1.75/watt
for the
total
installation
cost of
solar systems.
The
reimbursement
is limited
to $17,500,
or
approximately
10 kW.
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SREC is a
tradable
certificate
and will be
issued to
you
regularly as
your solar
system
generates
each
1,000-kilowatt
hours of
solar
electricity.
SRECs are
traded at
market
value.
Maximum
incentive is
up to $693
per MWh
($0.693 per
kWh) in
2009-2010
compliance
year. By
2013, 22.5%
of the total
power must
come from
the
renewable
energy in
state of New Jersay in
which at
least 2%
comes from
solar
energy.
Systems must
be
registered
with NJ
Board of
Public
Utilities;
facilities
are
qualified to
generate SRECs for 15
years after
the date of
interconnection.
The system
owner could
receive
thousands of
dollars in
income/revenue
every year
from New
Jeresy
utilities. |
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There is no
sales tax on
the costs of
equipment
and
installation
for all
solar
electric and
solar
thermal
equipments. |
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PSE&G has a 10 years at 6.5% interest rate solar loan program for its residential and
15 years at 11.11% interest rate for its commercial customers.
There are
many options
for
financing
your solar
electric
system.
PSE&G has
committed to
providing
approximately
$105 million
toward the
financing of
solar system
installations
over the
next two
years.
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The State of
New Jersey
exempts 100%
of value
added by
your solar
eletric
system from
local
property
taxes. In
order to
claim the
exemption,
property
owners must
apply for a
certificate
from their
local
assessor
which will
reduce the
assessed
value of
their
property to
what it
would be
without the
renewable
energy
system.
Exemptions
will take
effect for
the year
after a
certification
is granted |
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Net Metering
is an
electricity
buying and
selling
policy for
utility
customers
who operate
their own
Photovoltaic
systems.
Photovoltaic
systems are
connected to
the utility
grid. When
solar
electric
systems
generate
more
electricity
than you’ve
consumed,
the power
meter
reverses
direction
and returns
excess
electricity
to the grid.
Customers
may receive
credits at
retail
electric
rates
through this
process of
exporting
extra
electricity.
You could
sell your
excess
electricity
at peak
rates and
buy it back
at off-peak
rates.
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For additional
information, please
visit the following
websites:
http://www.dsireusa.org/incentives
http://www.njcleanenergy.com/
http://www.bpu.state.nj.us
http://www.pseg.com/customer/solar/index.jsp
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